C3.ai, Inc. (AI) stock plunged 5.45% in pre-market trading on Thursday, following the company's fiscal third-quarter 2024 earnings release. While the artificial intelligence software company reported a 26% year-over-year increase in revenue, the growth rate slowed down compared to the previous quarter, raising concerns among investors.
Moreover, C3.ai posted a wider-than-expected non-GAAP loss per share of $0.12, missing analyst estimates of a $0.25 per share loss. The company's adjusted operating loss of $23.14 million also fell short of expectations, despite marking an improvement over the prior year's quarter.
Investors were further spooked by C3.ai's weaker-than-expected earnings guidance for the fourth quarter and full year. The company's billings growth of 21.2% year-over-year lagged behind the revenue growth rate, indicating a potential slowdown in future sales.
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